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Five cornerstone investors have committed to put US$70 million into Beijing Urban Construction Design & Development Group's (BUCDD) initial public offering in Hong Kong, according to its prospectus.
BUCDD is seeking to raise net proceeds of HK$849 million from its initial share sale to finance expansion.
The company, which engages in design, survey and consultancy services for urban railway construction and engineering projects, is selling 337.34 million H shares at an indicative price range of HK$2.75 to HK$3.30 a share.
CSR (Hong Kong), controlled by Hong Kong-listed CSR Corp, and Capital Queen, an indirect subsidiary of Hong Kong-listed Beijing Capital Land, each agreed to subscribe US$20 million to the share offering.
The other three cornerstone investors - Beijing Capital (Hong Kong), China Construction Investment and Beijing Enterprise Group - each committed to buy US$10 million worth of shares.
"The company's development strategy is to continue to expand our design, survey and consultancy business in order to maintain our leading position in [the mainland's] urban transit industry and further diversify our businesses and expand our presence in overseas markets," BUCDD chairman Wang Liping said at the launch of the initial share offering in Hong Kong yesterday.